JP Morgan Files Patent for Blockchain-Based Virtual Receipts Management System

20.07.2018

JPMorgan Chase & Co has filed a new patent for a blockchain-based system that manages virtual receipts backed by assets or bonds.

The new patent, titled “Systems and methods for management of asset or obligation-backed virtual receipts on a distributed system,” was filed with the US Patent and Trademark Office (USPTO) on July 19.

The new system uses distributed ledger technology (DLT) such as blockchain to link “an underlying asset or obligation with its digital representation on a distributed system for the purposes of ownership tracking and transfer.” JPM’s new technology enables users to tokenize real assets and trade these virtual depository receipts like they would trade securities.

According to the filing, JPM believes that one possible application of their new invention is to facilitate initial public offerings (IPOs). The blockchain system would ensure immutability and non-transferability of ownership for all purchases.

These tokenized virtual receipts essentially comprise security tokens, which are tightly regulated by the US Securities and Exchange Commission (SEC). SEC Chairman Jay Clayton reaffirmed his view in June that most initial coin offering (ICO) projects should be considered securities offerings.

Latest news

15.08.2018
Japanese Messaging Giant LINE Launches $10 Million Blockchain Venture Fund LINE, Japan’s largest messaging app, launched “Unblock Ventures,” a $10 million token venture fund focusing on blockchain startups and initial coin offerings (ICOs).
15.08.2018
SEC Hits ICO Scammer with $30,000 Fine and Lifetime Trading Ban The founder of a fraudulent ICO project was issued a $30,000 fine, barred from serving as the director or officer of any publicly traded company, and banned from trading penny stocks for life by the U.S. SEC.
15.08.2018
Venezuela’s Next Step: a Central Bank For Cryptocurrencies The National Constitutional Assembly plans to reform the country’s 1999 Constitution to include a Central Bank for cryptocurrencies.